Over the past two months, total value locked (TVL) growth on LUNA has surpassed 105%. That’s a LUNAR number as investors realise they’re equipped with a gold mine – yield farming opportunities. And there’s plenty to choose from. Yet, one dApp rules them all!
Anchor Protocol is a yield farming strategy maximizer that’s been on a tear over the past months! But wait! I, myself, Miles Deutscher, one of Twitter’s crypto DeFi degens, will walk you through EXACTLY how to take advantage of this ecosystem for mind-blowing yields on your assets!
- Best Terra LUNA staking strategies
- Upcoming catalysts (Mars Protocol and Astroport)
- Mix and match strategies to maximize profits
Using Anchor Protocol
If LUNA is aimlessly sitting in your wallet, then Anchor Protocol is a great product offering the ability to borrow against your LUNA to mint UST. How do you do this? It’s super simple, and this Tweet thread lays it out perfectly!
Anchor also provides a safe method to earn a 19.5% yield on your TerraUSD (UST). LUNA holders can borrow UST to kick off the first borrowing strategy of the season, and essentially earn a “free” 19.5% on their LUNA position (consider liquidation risk when choosing your loan-to-value ratio).
Osmosis (OSMO) is another DEX hot shot that’s making the rounds in the Cosmos ecosystem, and, thanks to the Terra Bridge, swapping from LUNA to OSMO couldn’t be easier. Osmosis also offers almost instant speeds and cheap gas, so transacting is an absolute breeze.
Since most of us are degens, following the Osmosis strategy is a great option to up the ante when it comes to utilising UST for yield.
If you’re bullish on the OSMO token itself, you can also:
1. Repeat previous steps but swap your UST for OSMO and LUNA.
2. Deposit OSMO/LUNA into LP #561
3. Earn 94.46% APR
Always be wary of impermanent loss when yield farming.
Bullish catalysts: Mars Protocol and Astroport
Why is yield farming in the LUNA ecosystem a golden DeFi mine? Because Mars Protocol and Astroport are two extremely powerful protocols which will serve as the backbone of the Terra Luna ecosystem.
Success draws liquidity into the ecosystem and will make LUNA shine – in terms of price and reputation of course! Thus, the previous strategies will be particularly valuable as you’re able to retain your core LUNA stack through Anchor Protocol (while benefiting from earning yield).
Mars Protocol is an upcoming borrowing and lending platform on Terra. It’s LUNA’s AAVE, thus attracting mass liquidity and opening up a plethora of farming strategies.
The issue right now is that without a major credit market existing on Terra, farming strategies are relatively limited. Once Mars launches, a world of opportunities will be unlocked on Terra.
Those who get on Mars early enough (expected in Q1) can gain access to their governance token, and earn rewards for staking it.
Make sure you’re following @mars_protocol on Twitter so you don’t miss out. Early holders and stakers should stand to benefit massively. Read more about Mars protocol in their Litepaper here!
The expansion of the Terra ecosystem provides us with some AMAZING current and future opportunities to earn interest on assets. From yield farming strategies on Anchor and Osmosis, to the upcoming Mars Protocol launch, there’s so much to be excited about when it comes to the Terra LUNA ecosystem.
Make sure to stay up to date with Mars Protocol and Astroport announcements through Discord/Twitter, as they are well positioned to become the two pillars of the Terra ecosystem. Staying active in these communities is key to being on the frontier of new trends. I cover this topic in depth in my latest video.
Miles Deutscher is a degen with immense experience in finding Altocins gems, navigating the world of defi for the best strategies and biggest returns in the crypto space! Want more from Miles?
Check out his Twitter feed here.
and his YouTube channel here.